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Fidelity 401(k)

March 4th, 2009 at 01:54 pm

Finally, I JUST set up my new 401(k) on Fidelity. Of course, I have no money in there yet, but I was surprised how easy and painless it was to get it set up and running. Kudos to Fidelity.

For now, I've set it up to 25% contribution and buying into the Freedom Fund 2040 (FFFFX), but all that can be changed at any time later....

My new boss seems like a great guy, but I think he's a little confused about the details of the 401(k) program. He's saying that my employer has a sliding scale where I have to contribute at least 6% of gross before my employer will match 4% of my gross? That's a confusing way to look at it, and I am still not sure how to get in contact with my HR rep just yet.

But, I'm sure all that will get sorted out soon enough, and the most important thing to me is to get up and running on my end.

Update:
I finally got the 401(k) literature from our HR rep, and it looks like my boss was correct. This is the first time I've heard of a company that pays a percentage match of your gross based on your own percentage of gross contribution. Long story short, the max I can get is a 4% of gross match if I put in a minimum of 6% of gross contribution.

Soooo... if that's what it is, then that's what I will go with. Of course, I can always contribute more, up to the IRS limit, but my money needs to go into other investment buckets as well. Yes, that includes the Roth. Smile

Posted in Uncategorized | 6 Comments »

6 Responses to “Fidelity 401(k)”

  1. Apprentice Fun-Frugalist Says:
    March 4th, 2009 at 02:51 pm 1236178315
    1236178315

    Congrats !!

    Is that 25% of your take-home pay ? That seems like a very large percentage if it is.... that's impressive !!

  2. Broken Arrow Says:
    March 4th, 2009 at 03:12 pm 1236179543
    1236179543

    It's 25% of gross... so... it's actually bigger than that? But still, I don't think I'll keep it for long. My plan is only to capture as much match as possible, and it's sounding like it's only 6% of my gross. SO... that may be changed very shortly, once I get confirmation of exactly what the details of this new 401(k) program is suppose to be....

  3. Aleta Says:
    March 4th, 2009 at 04:01 pm 1236182471
    1236182471

    You aren't really limited to your employer. You could set up your Roth for the remainder of the 25% or at least make sure your match at work and Roth (on the side) equals the 25% that you want to invest.

  4. Broken Arrow Says:
    March 4th, 2009 at 04:47 pm 1236185256
    1236185256

    Hehe, yeah, my plan is to use the remainder of the money and max out Roth... well, every year actually.

  5. dmontngrey Says:
    March 4th, 2009 at 05:50 pm 1236189022
    1236189022

    Most company plans are set up like that. 4% match is nice at 6% contribution! I only get 3% for 6%. You only get half of your contribution up to 6%. Anything less than 6% gets less of a match.

  6. Broken Arrow Says:
    March 4th, 2009 at 06:57 pm 1236193072
    1236193072

    They are? I didn't realize that. Yeah, I was just mentioning to a co-worker (who is only amusing me because nobody here cares about the 401k like I do) that, pound-per-pound, this is a better deal than the old 401(k). However, I did end up with a lot more employer match in my old 401(k) simply because I was contributing so much that the old employer match is beyond the 4% gross limit of the new 401(k).

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